Gemini's Losses Pile Up as the Crypto Slump Bites Hard

Gemini's latest earnings didn't look pretty. The exchange posted a net loss of around $107.7 million for the second quarter, and its stock dropped more than 7% right after the news came out.

Why it matters

This isn't just a Gemini problem. It's a sign that the broader crypto slowdown is starting to really hurt exchanges, even the ones that still pull in decent revenue from trading fees. When trading volume drops, so does the money coming in, and costs don't shrink nearly as fast.

Lower volumes mean thinner margins, and that squeeze seems to be catching up with more platforms than people expected.

The bigger picture

Exchanges have been trying to diversify into custody, staking, and other services to soften the blow from slow trading periods. But this quarter shows that even with those extra revenue streams, a real slump still leaves a mark on the bottom line.

Worth watching whether other exchanges report similar numbers when their earnings come out.